Synthomer's (SYHMY) (SYYYF) acquisition of OMNOVA Solutions (OMN) is interesting for two reasons. First, the acquisition itself seems attractive. OMNOVA has an attractive specialty chemicals business, growth in which had been overshadowed by weakness in declining markets like paper and carpet. And from both a product and geographic standpoint, the acquisition seems like a good fit.
Synthomer is paying a seemingly hefty premium - the offer price is 58% higher than Tuesday's close - but OMN shares have tumbled of late. Including an estimated $29.6 million in synergies, Synthomer